9.231
Disbursements over $25,000 - contract required - exceptions.

(1)
Subject to divisions (A)(2) and (3) of this section, a governmental entity
shall not disburse money totaling twenty-five thousand dollars or more to any
person for the provision of services for the primary benefit of individuals or
the public and not for the primary benefit of a governmental entity or the
employees of a governmental entity, unless the contracting authority of the
governmental entity first enters into a written contract with the person that
is signed by the person or by an officer or agent of the person authorized to
legally bind the person and that embodies all of the requirements and
conditions set forth in sections 9.23 to 9.236 of the Revised Code. If the
disbursement of money occurs over the course of a governmental entity's fiscal
year, rather than in a lump sum, the contracting authority of the governmental
entity shall enter into the written contract with the person at the point
during the governmental entity's fiscal year that at least seventy-five
thousand dollars has been disbursed by the governmental entity to the person.
Thereafter, the contracting authority of the governmental entity shall enter
into the written contract with the person at the beginning of the governmental
entity's fiscal year, if, during the immediately preceding fiscal year, the
governmental entity disbursed to that person an aggregate amount totaling at
least seventy-five thousand dollars.

(2)
If the money referred to in division (A)(1) of this section is disbursed by or
through more than one state agency to the person for the provision of services
to the same population, the contracting authorities of those agencies shall
determine which one of them will enter into the written contract with the
person.

(3)
The
requirements and conditions set forth in divisions (A), (B), (C), and (F) of
section 9.232, divisions (A)(1) and (2) and (B) of section 9.234, divisions
(A)(2) and (B) of section 9.235, and sections 9.233 and 9.236 of the Revised
Code do not apply with respect to the following:

(i)
The amount received for the services is a set fee for each time the services
are provided, is determined in accordance with a fixed rate per unit of time or
per service, or is a capitated rate, and the fee or rate is established by
competitive bidding or by a market rate survey of similar services provided in
a defined market area. The market rate survey may be one conducted by or on
behalf of the governmental entity or an independent survey accepted by the
governmental entity as statistically valid and reliable.

(ii)
The services are provided in accordance with standards established by state or
federal law, or by rules or regulations adopted thereunder, for their delivery,
which standards are enforced by the federal government, a governmental entity,
or an accrediting organization recognized by the federal government or a
governmental entity.

(iii)
Payment
for the services is made after the services are delivered and upon submission
to the governmental entity of an invoice or other claim for payment as required
by any applicable local, state, or federal law or, if no such law applies, by
the terms of the contract.

(b)
Contracts under which the services are reimbursed through or in a manner
consistent with a federal program that meets all of the following requirements:

(i)
The program calculates the reimbursement rate on the basis of the previous
year's experience or in accordance with an alternative method set forth in
rules adopted by the Ohio department of job and family services.

(ii)
The reimbursement rate is derived from a breakdown of direct and indirect
costs.

(iii)
The
program's guidelines describe types of expenditures that are allowable and not
allowable under the program and delineate which costs are acceptable as direct
costs for purposes of calculating the reimbursement rate.

(iv)
The program includes a uniform cost reporting system with specific audit
requirements.

(c)
Contracts under which the services are reimbursed through or in a manner
consistent with a federal program that calculates the reimbursement rate on a
fee for service basis in compliance with United States office of management and
budget Circular A-87, as revised May 10, 2004.

(d)
Contracts for services that are paid pursuant to the earmarking of an
appropriation made by the general assembly for that purpose.

(B)
Division
(A) of this section does not apply if the money is disbursed to a person
pursuant to a contract with the United States or a governmental entity under
any of the following circumstances:

(1)
The person receives the money directly or indirectly from the United States,
and no governmental entity exercises any oversight or control over the use of
the money.

(2)
The
person receives the money solely in return for the performance of one or more
of the following types of services:

(a)
Medical, therapeutic, or other health-related services provided by a person if
the amount received is a set fee for each time the person provides the
services, is determined in accordance with a fixed rate per unit of time, or is
a capitated rate, and the fee or rate is reasonable and customary in the
person's trade or profession;

(b)
Medicaid-funded services, including administrative and management services,
provided pursuant to a contract or medicaid provider agreement that meets the
requirements of the medicaid program .

(c)
Services, other than administrative or management services or any of the
services described in division (B)(2)(a) or (b) of this section, that are
commonly purchased by the public at an hourly rate or at a set fee for each
time the services are provided, unless the services are performed for the
benefit of children, persons who are eligible for the services by reason of
advanced age, medical condition, or financial need, or persons who are confined
in a detention facility as defined in section 2921.01 of the Revised Code, and
the services are intended to help promote the health, safety, or welfare of
those children or persons;

(d)
Educational services provided by a school to children eligible to attend that
school. For purposes of division (B)(2)(d) of this section, "school" means any
school operated by a school district board of education, any community school
established under Chapter 3314. of the Revised Code, or any nonpublic school
for which the state board of education prescribes minimum education standards
under section 3301.07 of the Revised Code.

(e)
Services provided by a foster home as defined in section 5103.02 of the Revised
Code;

(f)
"Routine
business services other than administrative or management services," as that
term is defined by the attorney general by rule adopted in accordance with
Chapter 119. of the Revised Code;

(g)
Services to protect the environment or promote environmental education that are
provided by a nonprofit entity or services to protect the environment that are
funded with federal grants or revolving loan funds and administered in
accordance with federal law.

(3)
The person receives the money solely in return for the performance of services
intended to help preserve public health or safety under circumstances requiring
immediate action as a result of a natural or man-made emergency.

(C)
With
respect to an unincorporated nonprofit association, corporation, or
organization established for the purpose of providing educational, technical,
consulting, training, financial, or other services to its members in exchange
for membership dues and other fees, any of the services provided to a member
that is a governmental entity shall, for purposes of this section, be
considered services "for the primary benefit of a governmental entity or the
employees of a governmental entity."